Credit counseling

[Lothlorien]

Anyone know anything about these places? A friend of mine is considering going this route, but I'm a bit skeptical....guess that's just the Jersey Girl in me.

Are they reputable or do they rip you off?

 

[Momslittleangels]

I have heard that Nova Debt is good, but haven't used them myself. There are a lot of bad people out there trying to make a buck off of those who are struggling.

 

[DazedandConfused]

Do her research!

Check with the BBB and just because it's "nonprofit" doesn't mean its reputable.

There is also a difference between "credit counseling" and "debt relief or reduction".

Another thing to consider is if one considers "debt reduction" the amount the debt that is reduced must be reported as taxable income. Just something to consider.

 

[hearts and roses]

There are so many of those companies popping up, I would also be leary of which one to trust. Definitely check with the BBB first.

I used a company years ago and while it helped me get rid of my debt, I later found out that they should not have been charging me a monthly fee, as reputable companies wouldn't. Most of them have a one time fee, however.

 

[susiestar]

husband and I used Genus when we went through this. They handled everything very well - even the one credit card company that kept calling us at all hours of the day and night. It sure made a lot of things less stressful.

Your bank may also have some names that might help.

Be SURE that it is not one of the debt relief programs.

After the agreement with the credit counselor ALL payments should go through them. You might have to make a payment the very first billing cycle because it may take that long to get everything into the system.

If you make a payment to one of the creditors listed on the agreement, even a payment of $1), then you can be booted out of the program and your payments will skyrocket. MANY creditors will start hounding you to send a payment to them, the "we are buddies, I just want to save you a headache, I wouldn't ever steer a buddy wrong" kinds of pitches.

This is the time to tell people to call the credit counselor. You can also charge them with harassment if they continue to call. The credit counselling co will handle ALL of these calls - jsut get a name/id number and a call back number.

It was one of the best things we did in our entire marriage. It took 3 years but we did it!

 

[ML]

We went through this years ago and thought we done good. But when we went to buy a house a few years later the loan officer told me that this shows up on credit the same as a bankruptcy and my credit was ruined. I was devastated. I wished I had done BR because at least I wouldn't have spent all that money for nothing. Tell them to do their reseach.